Does the force majeure clause in the Aw franchise agreement apply to the payment of monies?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.7 Force Majeure. Whenever a period of time is provided in this Agreement for either party to do or perform any act or thing, except the payment of monies, neither party shall be liable or responsible for any delays due to strikes, lockouts, casualties, acts of God, war, pandemic, governmental regulation or control or other causes beyond the reasonable control of the parties, and in any event said time period for the performance of an obligation hereunder shall be extended for the amount of time of the delay. This clause shall not apply or not result in an extension of the term of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the force majeure clause in the franchise agreement does not apply to the payment of monies. The franchise agreement states that neither party is liable for delays due to certain events, such as strikes, acts of God, war, or governmental regulations, but this exception specifically excludes the payment of monies.
This means that regardless of unforeseen circumstances, an Aw franchisee is still obligated to make all payments to the company on time. Failure to do so could result in penalties or other consequences as outlined in the franchise agreement.
This is a fairly standard clause in franchise agreements. Franchisees should be aware that force majeure clauses typically do not excuse payment obligations, as franchisors rely on these payments to maintain their own operations and provide support to franchisees.